FAC Explorer

Audit 302252

FY End
2023-09-30
Total Expended
$3.83M
Findings
2
Programs
1
Organization: Child Nutrition, INC (VA)
Year: 2023 Accepted: 2024-04-02
Auditor: Pbmares LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
392102 2023-001 Significant Deficiency - E
968544 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $3.83M Yes 1

Contacts

Name Title Type
YJ7LHG1FY2N5 Elizabeth Wittusen Auditee
5403473767 Jon-Michael Rosch Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Child Nutrition, Inc. (the Organization) under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Organization.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Eligibility – Child and Adult Care Food Program – Federal Assistance Listing Number 10.558; Award Period: Year ended September 30, 2023; Pass-through entity name: Virginia Department of Health Criteria: Per 7 CFR §226.16(iii), sponsoring organizations must review each facility three times each year. Each year is defined as the fiscal year per Virginia Department of Health clarification. Condition: The Organization did not complete the monitoring procedures required by the CACFP eligibility of three visits per year for one of the providers tested. This is a violation of the monitoring requirements under the CACFP. Cause: The Organization did not have a clear understanding of the compliance requirement that the three visits per year had to take place within the fiscal year and adhered to a 12 month cycle for each provider instead of the specified 12 month time frame. Therefore there was also a lack of internal controls to detect if the minimum number of visits had occurred for each provider within the required time frame. Effect: The lack of review of eligibility could result in an ineligible provider receiving reimbursement under the federal award. Questioned Costs: None noted. Context: One provider tested did not receive the required minimum of three visits during the fiscal year. Recommendation: We recommend the Organization implement an addition to the tracking of monitor visits already in place that will identify eligibility compliance for the fiscal year. Views of Responsible Officials: Child Nutrition, Inc. management agrees with Finding 2023-001: Eligibility – Child and Adult Care Food Program – Federal Assistance Listing Number 10.558; Award Period: Year ended September 30, 2023; Pass-through entity name: Virginia Department of Health.
Finding 2023-001
Eligibility – Child and Adult Care Food Program – Federal Assistance Listing Number 10.558; Award Period: Year ended September 30, 2023; Pass-through entity name: Virginia Department of Health Criteria: Per 7 CFR §226.16(iii), sponsoring organizations must review each facility three times each year. Each year is defined as the fiscal year per Virginia Department of Health clarification. Condition: The Organization did not complete the monitoring procedures required by the CACFP eligibility of three visits per year for one of the providers tested. This is a violation of the monitoring requirements under the CACFP. Cause: The Organization did not have a clear understanding of the compliance requirement that the three visits per year had to take place within the fiscal year and adhered to a 12 month cycle for each provider instead of the specified 12 month time frame. Therefore there was also a lack of internal controls to detect if the minimum number of visits had occurred for each provider within the required time frame. Effect: The lack of review of eligibility could result in an ineligible provider receiving reimbursement under the federal award. Questioned Costs: None noted. Context: One provider tested did not receive the required minimum of three visits during the fiscal year. Recommendation: We recommend the Organization implement an addition to the tracking of monitor visits already in place that will identify eligibility compliance for the fiscal year. Views of Responsible Officials: Child Nutrition, Inc. management agrees with Finding 2023-001: Eligibility – Child and Adult Care Food Program – Federal Assistance Listing Number 10.558; Award Period: Year ended September 30, 2023; Pass-through entity name: Virginia Department of Health.